Brookfield Reinsurance has filed its 2023 annual report, including audited financial statements for the year ending December 31, 2023.
The report was filed on Form 20-F with the US Securities and Exchange Commission (SEC) on EDGAR and with Canadian securities regulatory authorities on SEDAR.
In addition to its detailed financial results, which were initially published in February, the annual report elaborates on the acquisition of Argo Group, finalized in November 2023.
Brookfield’s acquisition of Argo – in-depth
According to the annual report, the acquisition saw Brookfield Reinsurance acquire 100% of Argo Group International’s issued and outstanding shares. This all-cash transaction amounted to $30 per share, valuing the acquisition at $1.1 billion.
Following the deal, Argo Group was re-domiciled as a US corporation and renamed Argo Group International Holdings, Inc. (“Argo”) on November 30, 2023. Argo specializes in underwriting specialty insurance products within the property and casualty market.
Upon finalizing the acquisition, Brookfield Reinsurance assumed all of Argo’s assets and liabilities as of the closing date and has since consolidated the acquired business for financial reporting. From November 16 to December 31, 2023, Argo contributed revenues of $191 million and a net profit of $1 million to Brookfield Reinsurance.
Consolidated annual results
The annual report for 2023 also reveals the reinsurer’s consolidated financial results, showing an uptick in net premiums to $4.137 billion in 2023 from $3.011 billion in 2022, marking a substantial increase from the $1.016 billion recorded in 2021.
Additional revenue streams also saw a notable rise, with other policy revenue climbing to $413 million in 2023, up from $224 million the previous year. The company’s net investment income nearly doubled, reaching $1.809 billion in 2023 compared to $978 million in 2022, and a dramatic leap from the $76 million reported in 2021.
Furthermore, investment-related gains reversed from a loss of $185 million in 2022 to a gain of $534 million in 2023, indicating a positive shift in investment outcomes.
Total revenues for the year stood at $7.020 billion, a significant increase from $4.309 billion in 2022 and $1.041 billion in 2021.
